Investor Presentaiton

6 furtisments HELYEL Home First Finance Company India Ltd. HDFC securities 20 Click. Invest. Grow. YEARS Distribution strategy HFFC has 72 physical branches with a significant presence in urbanized regions in the states of Gujarat, Maharashtra, Karnataka and Tamil Nadu. The focus for branch expansion will be on states which are more urbanized and which are larger contributors to the country's GDP because there is strong correlation between that and the demand for affordable housing. The company had started expansion in South about two years ago and now south contributes about 30% to the overall business. The next states of focus for expansion strategy are like Chhattisgarh, Madhya Pradesh, Rajasthan and Uttar Pradesh. Management has informed that the company will prefer to focus on the larger markets and the big pockets in these states. The expansion strategy is pan India distribution driven by strategic market selection & contiguous expansion. The biggest benefit from this strategy will be that it will reduce the over dependence of a few regions. During the quarter, the company continued to increase its distribution, with commencing business at 33 potential branch locations, which contributes 14% of incremental business. The company has also established a physical presence in 32 new locations that are currently contributing 6% of incremental business. Management aims to add 20 branches over the next two years, while 50 different locations have been identified for digital expansion. As these new branches will start operating, the cost to income ratio will improve and rapid growth will be attained. The company has presence mainly in Tier-I/II cities and that too caters mainly to areas which are on the outskirts of cities. Geographic Expansion: States/Territories FY19 FY20 FY21 Q1FY22 Gujarat 40.8% 39.7% 38.2% 38.2% Maharashtra 28.4% 21.7% 19.2% 18.7% Tamil Nadu 8.5% 9.9% 11.1% 11.4% Karnataka 8.2% 9.0% 9.1% 8.9% Rajasthan 3.8% 5.0% 5.5% 5.3% Telangana 3.2% 4.9% 5.5% 5.7% Madhya Pradesh 2.6% 3.9% 4.4% 4.5% UP & Uttarakhand 2.0% 2.6% 2.9% 3.0% Haryana & NCR 1.3% 1.1% 1.0% 0.9% Chhattisgarh 0.8% 0.9% 1.2% 1.2% Andhra Pradesh 0.4% 1.3% 1.9% 2.2% FRETAILRES RETAILRESEARCH

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